The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1887-06-16

X, u.
MID & Co, coffee merchants, has just'heen an
nounced. They weIe caught largely long on de-
clining Market which has just declined ninety five
points further and very active, excited and panicky
More failures are expected to follow. H. q. Arnold
WAS the originator of the coffee exchange and its
first president. He was formerly of the firm of
Arnold, eturgis & Co, the largest coffee house in
the United States His former country sett on the
Sound is LOW known as Oak Point,
EXCITEMENT ON CHANGE.
New York, June 13-The opening of the cof
fee ex hange this morning was the m st exciting
In its history. Very limited space was allotted for
clerks and customers In the exchange. At the
Junction of Pearl and Beaver streets there was an
excited throng, anxious to reach the brokers with
orders or receive from them the result OF orders al
ready made, while around the Il most every
broker outside the clique had orders to sell. Buy
ing to-day generally came from 5. Gruner and
Crossman & co. These firms repres nted the
cliqe, which first started the booU in coffee
about eighteen months ago, and caused
it to advance from to is cents a pound. Mt tie
latter figure number of Rio Janeiro operators
called the Br" lillian party, who had been bears on
the market all the way up TO Is cente, changed
their position and became buyers, and carried
prices above 81 cents, which figure it crossed about
two weeks ago. They are now said to be loaded
heavy, one house being reported to hold 5O,uOo
bags for their account 5 Gruner and the Gross
man marty, on the other hand, are the buyers to-
day, and are credited with unloading on the Bra
zilians around the high fgures.
MORE FAILURES.
NEW YORK, June 13.-The failure of Mackay "
Small, prominent coffre brokers OF Water etreet,
wae announced this afternoon. Mr. Small OF this
firm, was formerly connected with the large cohce
firm of Small Bros Il Co, with houses IN New
York, Baltimore, Chicago and New Orleans. An
other failure has been announced on the Con- 9
exchange, and the firm 8 name ls w. l. Norton "
| Co. coffee brokers of No. 100 Water street. The
liabilities are not more THAI $20 co. and their bust
ness is chiefly done with Baltimore parties.
| The failure is supposed to have been caused
H., hu innh hnu6p9
| in time. m
The liabilities are stated above one million;
| New York bank is said to be heavily involved. The
| liabilities IF Mackay q Small are estimated from
| S15 900 to S 10000. The market is now steadier.
| Gruner Joseph, j. Odonoghue and other strong
houses bought largely at the bottom, so as to sus-
tain the market and make Losses as small AS posi-
BILE. December advanced from 15Sc to 1b75c.
More failures are expected before the time to de-
posit margins expires.
THE PANIC.
The excitement in the coffee market which has
attended the decline in coffee reached its highest
to-day, and the broAers acting lor the bull opera,
| tors became panic stricken and rushed TO sell
| without regard to price. Inc oulls blame the
Grouner- Crossman syndicate for starting the de
cline, which eliminated in to-day panic, but tht
bear syndlcate strained every nerve to check the
fall, without success. In fact, the eyndicatt
brokers were the only buyers at the
opeping, which was at l7c pound, (oyer cent be
low Saturuay'e close), ana although the rally "a'
caused by the bear supporting orders the rumors
of trouble aud the continued selling caused them tC
stop buying, and join the bulls in unloading the
stuff they had taken early. All through the fore
noon the selling was coupled with the widest
scenes ever witnes, ed in the exchange, and in al
the offices were knots of brokers' dis
fn''nf he hs asruodn Rl0'''se tsere Oh was
hope OF rally, but the heavy selling continued
and soon the price fell off in heavy hnctaatioD
until it reached Ii cents pound.
y his decline was accompanied ny the no!lce
suspension of the three firms, H. u. Arnold " co,
Norton, Veil " Brevan and Macky " Small
After the announcement of these failures an or
ganized effort was made by the prominent houses
like O'Donohue, Grunber and Crossman,to sustain
the market, and they succeeded in causing rail-
of about> l cent pound. The failure o
, Il. G. Arnold 81 Co. attracted the most attention
, as they are the most prominent houses in tn
trade, but it was not generally anticipated I'm
senior member Of the firm was caught in 1857, b
the collapse of one Of the largest deals ever al
tempted in coffee, ard was for over million dol
lars. lie started in business again, however, an
was successful III all his ventures lie is cretite
with being the founder of the coffee exchange, an
was at one time its president, but o.
August 10, lbs-, he formed partnership Wit
his SON. and since then they have done strictly con
mission business. He ascribes the failure to III
fact that his customers were so far away that
was Impossible to reach them in time to obtal
sufficient margins to meet the decline. lie cCul
make no statement of his liabilities and said tha
he could not say anything about the chances OF re
suming
Outsiders claim that the firm has teen cal
rying 100000 bags of coffee for the Ri
, Janeiro operators, known as the Brazilian party
, and it is estma ell the Liabilities wi
amount to over S1.00O0O0. The Brszilia
party started to bu coffee ate
the Gruuer-C Crossman syndicate advance
the price from to 49,, pound, and since the
ket aud are said to have unloaded all their Ion
stuff on the Brazilians. The extrem
decline 10 from 21.3 cents two week
ago to 10 cents to-day, or over ga cents pound
There was some talk of trouble in banking circle
as result of the panic, but as the banks onl
loaned 80 per cent of t e market value on COFFEE
it is hard to see how any of them could have bee
involved, Mackay & Small, one of the suspende
firms are supposed 20 have liabilities of S20OO
The liabilities of the other firms are small.